OPERATING LEASES

3 Months Ended

Mar. 31, 2022

OPERATING LEASES - LESSOR

First Financial provides financing for various types of equipment through a variety of leasing arrangements. Operating leases are carried at cost less accumulated depreciation in the Consolidated Balance Sheets. Operating leases were $87.4 million and $73.9 million at March 31, 2022 and December 31, 2021, respectively, net of accumulated depreciation of $28.0 million and $25.5 million at March 31, 2022 and December 31, 2021, respectively. The Company recorded lease income of $4.7 million relating to lease payments for operating leases in leasing business revenue in the Consolidated Statement of Income for the three months ended March 31, 2022. Depreciation expense related to operating lease equipment was $3.9 million for the three months ended March 31, 2022.

First Financial performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. First Financial recognized no impairment losses associated with operating

lease assets for the three months ended March 31, 2022. Recognized impairment losses, if any, would be recorded in Leasing business income in the Consolidated Statements of Income.

The future lease payments receivable from operating leases as of March 31, 2022 are as follows:



(Dollars in thousands)	Undiscounted cash flows
2022 (remaining nine months)	$	13,371
2023	14,659
2024	8,424
2025	2,868
2026	1,288
Thereafter	103
Total operating lease payments	$	40,713